It's not ethanol, it's China. Why food prices are high
#1
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China's meat consumption change uses more grain than US ethanol industry, Biofuels Digest study reports-
The change in Chinese meat consumption habits since 1995 is diverting 2.9 billion bushels of grain to livestock feed — more than the entire 2.3 billion bushel harvest used to make US ethanol.
There has been a swirling controversy over what is driving up the price of corn, and prompting the switch of soy or wheat acreage to corn in recent years. Most observers have concluded that failed wheat harvests, increased demand for food in India and China, and the rising use of corn for biofuel production in the US, were all factors in the rise.
But how much?
China’s meat consumption increase began in the early 1980s. As early as 1995, annual meat consumption was increasing at a 12 percent annual rate. Consumption had been 16 kilograms per person 25 years ago, in 1983, according to the World Resources Institute.
In 1995, meat consumption was 25 kilograms per person, and reaching 31 kilograms by 1999, 50 kilograms by 2000, and is 53 kilograms per person today.
China meat consumption 1995
China Population in 1995: 1.203 billion
Meat consumption per capita: 25 kilograms
China meat consumption: 30.075 million tonnes
Average kilos of grain to produce a kilo of meat: 5
Grain needed to support meat consumption: 150.375 million tonnes
China meat consumption 2008
Population in 2008: 1.321 billion
Consumption per capita: 53 kilograms
China meat consumption: 70.013 million tonnes
Average kilos of grain to produce a kilo of meat: 5
Grain needed to support meat consumption: 350.065 million tonnes
Change in China meat consumption 2008
Change 1995-2008 in meat consumption: 39.938 million tonnes
Change 1995-2008 in grain consumption: 199.69 million tonnes
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Policymakers have also cited food riots in Mexico over rising tortilla prices as evidence of a distortion in the markets caused by ethanol’s demand for corn.
Mexican corn consumption 1993-2007
Mexican population increase since 1993: 19 percent
Mexican corn production increase since 1993: 18 percent
Mexican corn consumption increase since 1993: 57 percent
US exports, as share of Mexican white corn (tortilla corn) market in 2007: 14 percent
Mexican corn production increases are keeping up with population increases, but falling rapidly behind in terms of meeting increased caloric demand. [ the world is getting fatter ] With US exports accounting for only 14 percent of the white corn market, and with US ethanol using yellow field corn, not white tortilla corn, the impact of the US ethanol industry on Mexican tortilla prices is negligible.
http://biofuelsdigest.com/
The change in Chinese meat consumption habits since 1995 is diverting 2.9 billion bushels of grain to livestock feed — more than the entire 2.3 billion bushel harvest used to make US ethanol.
There has been a swirling controversy over what is driving up the price of corn, and prompting the switch of soy or wheat acreage to corn in recent years. Most observers have concluded that failed wheat harvests, increased demand for food in India and China, and the rising use of corn for biofuel production in the US, were all factors in the rise.
But how much?
China’s meat consumption increase began in the early 1980s. As early as 1995, annual meat consumption was increasing at a 12 percent annual rate. Consumption had been 16 kilograms per person 25 years ago, in 1983, according to the World Resources Institute.
In 1995, meat consumption was 25 kilograms per person, and reaching 31 kilograms by 1999, 50 kilograms by 2000, and is 53 kilograms per person today.
China meat consumption 1995
China Population in 1995: 1.203 billion
Meat consumption per capita: 25 kilograms
China meat consumption: 30.075 million tonnes
Average kilos of grain to produce a kilo of meat: 5
Grain needed to support meat consumption: 150.375 million tonnes
China meat consumption 2008
Population in 2008: 1.321 billion
Consumption per capita: 53 kilograms
China meat consumption: 70.013 million tonnes
Average kilos of grain to produce a kilo of meat: 5
Grain needed to support meat consumption: 350.065 million tonnes
Change in China meat consumption 2008
Change 1995-2008 in meat consumption: 39.938 million tonnes
Change 1995-2008 in grain consumption: 199.69 million tonnes
*****
Policymakers have also cited food riots in Mexico over rising tortilla prices as evidence of a distortion in the markets caused by ethanol’s demand for corn.
Mexican corn consumption 1993-2007
Mexican population increase since 1993: 19 percent
Mexican corn production increase since 1993: 18 percent
Mexican corn consumption increase since 1993: 57 percent
US exports, as share of Mexican white corn (tortilla corn) market in 2007: 14 percent
Mexican corn production increases are keeping up with population increases, but falling rapidly behind in terms of meeting increased caloric demand. [ the world is getting fatter ] With US exports accounting for only 14 percent of the white corn market, and with US ethanol using yellow field corn, not white tortilla corn, the impact of the US ethanol industry on Mexican tortilla prices is negligible.
http://biofuelsdigest.com/
#3
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And China can afford all that Beef (and corn) because were are sending so much American manufacturing, and U.S. dollars over there.
How come we support a large communist country like China, and embargo a tiny communist country like Cuba?
How come we support a large communist country like China, and embargo a tiny communist country like Cuba?
#4
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I see a lot of folks demanding that America reduce it's standard of living because of "Global warming". Do you suppose China and India will do the same? Not likely. They're transitioning from bicycles and vegetables to cars and meat. Think they are going to go backwards?
#5
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I have been to both Cuba and China. Both countries are full of friendly, hard working people who are just trying to make a better life for themselves. Both have govts massively intolerant to question or opposition. China has a billion up and coming consumers, Cuba has some cigars... Hmmm
#6
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(correct me if im wrong) you're data implies that china is causing a shortage in world food supplies, hence the rise in prices. but as far as i know, the increased demand for biofuels didn't come from china. it came from the developed world :$
#8
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maize is a major source of food for the developing world. maize is also a source of biofuel (its biomass). when huge companies began buying biomass in an effort to switch to renewable sources of energy, food supplies fell and a rise in prices resulted...this is as i recall it
#9
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Unless you were there ( physically ) you don't recall it, you only recall what was reported in the biased and incorrect news media.
The United States has exported more corn to developing nations in the past few years than ever before in history.
Farmers are more productive than ever before in history.
We are using fewer acres for farmland today, than in the 1930's and 1940's and are still feeding everyone with 2 billion bushels of corn surplus per year.
( 1 bushel = 56 pounds )
1 bushel = $3.50 on average.
What else can you get 56 pounds of for $3.50?
That means there is $0.04 of corn per 1 pound box of corn flakes... at today's higher prices.
Biofuels use far less grain that most people realize.
Biofuels 'net' use of grain is HALF of what the media reports.
Half of all grain used to make ethanol still makes it into the animal feed market and this is rarely reported.
I know, because I am physically there every day, making a living at it.
The United States has exported more corn to developing nations in the past few years than ever before in history.
Farmers are more productive than ever before in history.
We are using fewer acres for farmland today, than in the 1930's and 1940's and are still feeding everyone with 2 billion bushels of corn surplus per year.
( 1 bushel = 56 pounds )
1 bushel = $3.50 on average.
What else can you get 56 pounds of for $3.50?
That means there is $0.04 of corn per 1 pound box of corn flakes... at today's higher prices.
Biofuels use far less grain that most people realize.
Biofuels 'net' use of grain is HALF of what the media reports.
Half of all grain used to make ethanol still makes it into the animal feed market and this is rarely reported.
I know, because I am physically there every day, making a living at it.